Adam Carvalho (Farrer & Co) sets out the options open to trustees when a trustee executes a document that has an unintended effect, and the current requirements for applying to court for a remedy.
Question
My client is a trustee of an English law trust who has been advised that a deed they executed is likely to have adverse tax effects which were not intended. The deed was supposed to create a number of interests in possession. However it seems that because of the way it was prepared the deed failed to give effect to this intention and the relevant beneficiaries have instead received contingent interests that are likely to be subject to inheritance tax charges. Is there anything that can be done to amend the deed so that it achieves the intended result?
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Adam Carvalho (Farrer & Co) sets out the options open to trustees when a trustee executes a document that has an unintended effect, and the current requirements for applying to court for a remedy.
Question
My client is a trustee of an English law trust who has been advised that a deed they executed is likely to have adverse tax effects which were not intended. The deed was supposed to create a number of interests in possession. However it seems that because of the way it was prepared the deed failed to give effect to this intention and the relevant beneficiaries have instead received contingent interests that are likely to be subject to inheritance tax charges. Is there anything that can be done to amend the deed so that it achieves the intended result?
...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")